One primary reason persons buy rental properties is because of investment benefits. Many rental property owners may already know of this. But few maybe aware of the various tax benefits they may reap. Here are some of them.
One of the first tax benefits that rental properties accords their owners is depreciation. It deduces the costs involved in buying and improving the property. Instead of the tax deductions being taken as one large chunk during the year when the property is purchased, the depreciation is spread across its useful life. You can start depreciating the property once it is placed on lease, not when someone starts leasing it. To better understand this specific tax benefit, one might need to consult with the IRS.
A lot of rental properties can be used for dual-use deductions. With professional help from accountants, one can maximize the legal tax deduction claims. … Read More